10

[j. P. MAXWELL.

I.—6a.

The company, however, had to comply with the demand or to abandon its enterprise. The company's petition seeks now to be relieved of the excessive railway charges for coal for shipment, and to pay only the local rates which have been gazetted for over twenty-three years. I think, Mr. Chairman, that is all I have to say about the matter. 6. Sir A. R. Guinness.] Did you state the actual cost of vour line of railway from Blackball to Roa ?—ln round figures, £30,000.' 7. What discount is the company prepared to allow if the Government would purchase that line ?—We would be very glad to take £15,000, if we could get that. 8. Less than half the cost ? —Yes. We want it for the mine. 9. Have you proved at your mine what quantity of coal there is in sight ?—The field contains 60,000,000 tons, and on the portion we are just resuming work we have had expert opinions, and they say that there are about four or five million tons available in that patch —it is only a small part of it. 10. If the Government purchased this railway that you have constructed is there any chance of the mine or the coal in the mine cutting out so as to cause an abandonment of the works ? —I think not. Our shareholders have just subscribed £35,800 more to go on with, for development and extension purposes. Thejr are trying to get £50,000, but have not succeeded, unless we can get the Government to take our line : we would have it then. 11. Are you not aware, from your knowledge of the country, that in the neighbourhood of your mine coal-seams extend for considerable distances north and south and west through the coalmeasures ?—The measures extend quite out of our area. There is another Government lease close by our terminus, which has been offered to the company, but we have quite enough in our hands for our time. 12. If other coal-measures in the neighbourhood are taken up and worked, could they connect their works with the piece of railway you are building ? —Yes. 13. Would that be the natural route for conveying that coal to port ?—lt is the natural route — we have the key to the position. Our piece of railway is the only outlet for that part of the country. The Government mine is on the other side of the range ; but they are about 1,500 ft., I believe, below our level. The cost of getting the coal out by any other route would be excessive. I think the outlet by way of the Blackball branch is the only one available. Hon. Mr. Herries.] Mr. Chairman, I would like the agreement to be read by the clerk. The Clerk read the agreement, which is as follows : " This deed made the tenth day of May 1907 between the Paparoa Coal Company (Limited) a company duly registered under the Companies Act 1882 and carrying on coal-mining operations at or near Blackball in the Provincial District of Nelson (hereinafter with its successors and assigns included in the expression " the company ") of the one part and His Majesty the King of the other part Whereas by the Railways Authorization Act 1901 the Governor of the Colony of New Zealand on behalf of His Majesty was authorized to construct the Railway therein referred to as the Ngahere-Blackball Railway And whereas the Governor required an undertaking by the company that it will supply a minimum amount of traffic and for that purpose the company has agreed to enter into these presents Now this deed witnesseth. that in consideration of the premises the company hereby covenants and agrees with His Majesty that if the said railway is constructed then for the term of seven years computed from the date on which the said company commences to put out coal from its mine the company will supply coal to be carried by the said railway in such quantity that the carriage thereof shall yield a gross annual average freight of not less than one thousand six hundred and sixty-six pounds (£1,666) calculated at the rate of 4d. per ton for the distance between Blackball and Ngahere And it is hereby agreed and declared as follows I In the computation of the aforesaid gross freight the freight for hauling from Ngahere to Greymouth or elsewhere shall not be included 2 If the aforesaid gross freight does not amount to the average annual sum of one thousand six hundred and sixty-six pounds (£1,666) the company will forthwith after the close of the period of seven years aforesaid pay the deficiency as a debt due to the Crown and it shall be recoverable accordingly 3 Nothing herein contained shall be construed to impose on His Majesty or the Governor or the Minister of Railways any obligation to construct or maintain the said railway. In witness whereof these presents have been executed by the parties hereto the day and year first above written Signed by His Excellency the Governor in the name and on behalf of His Majesty the Kingin the presence of H. C. Waterfield, Private Secretary—Plunket, Governor—The common seal of the Paparoa Coal Company (Limited) was hereto affixed in the presence of J. P. Maxwell, Director ; W. Watson, Director : J. M. Butt, Secretary." 14. Hon. Mr. Herries.] I understand you maintain, Mr. Maxwell, that this gives the Government the power to charge 4d. freight ? —The agreement is current for what it is worth. Of the validity of the Government's action I cannot .speak. What the legal view may be regarding the guarantee — that is a legal question. It has never been abrogated, and we objected to this agreement in our petition, to show how we have been treated. The Blackball Company would not sign the agreement. It signed one agreement when the railway was going to the Blackball Township. When the Government deviated the line, they said, " Oh, there is another railway, and we won't sign." 15. You agreed to 4d. per ton —you have agreed ?—Yes. We had to sign the agreement. We had no alternative ; it meant liquidation or agreeing. 16. Do you say the Railway Department is not justified in charging 4d. per ton ?—The Railway Department has nothing to do with it. They make their charges by gazetting. The gazetted rate is 2s. 6d. from Blackball to Greymouth. We do not pay the 4d. now. When the seven years are up and if this matter is gone into on the part of the Government, they will make us pay if we have not fulfilled the conditions. The rate of 4d. on the company's mine is another matter. 17. If you fulfil the conditions I—The1 —The first demand was that we should pay this before we were putting out 100,000 tons a year; and after a great deal of verbal haggling they finally agreed that we